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SaaS Product Market Fit Challenge

Today, we take a look at the key KPIs that all SaaS solutions need to understand and discover four reasons why success depends on an almost mythical concept known as product-market fit. If you are wondering how to measure product marketability (PMF), then this is the right place for you. We show you how we calculate and track two key SaaS metrics that look at what investors are using to determine whether a company is a good investment. PMFs are the point at which a particular market responds so positively to a company's product that it meets the needs of the market. [Sources: 0, 3, 9, 13]




The point of product-market adaptation is reached when a SaaS start-up has developed into a satisfactory and attractive market segment and there are promising figures showing that it can be scaled. Product marketability can be loosely defined as the point in time when the product has developed into a market segment that finds it attractive so that its company can grow scalably. PMFs when your SaaS product starts to deliver significant benefits to potential customers. Products Market Fit can be loosely defined as the point at which the products have developed into a market segment that finds them attractive, so that it becomes scalable. [Sources: 7, 11, 14]

For the layman, product marketability can be understood as the point at which a start-up introduces a new product that meets the actual needs of the customer and does so in a way that is better than the alternatives and that the market can support as an independent company. It is about being good on the market, knowing what the markets need, and developing products that satisfy these needs convincingly. [Sources: 14, 17]

Product market fit is almost never a linear process and SaaS must have a strong feedback loop and be able to systematically test features to achieve fit. By transforming real-time feedback directly into the SaaS product, we can accelerate development and delivery and increase the speed of our approach to adapting to product-market conditions by transforming this feedback into feedback directly within our product. [Sources: 5, 10]

Applying a customer-centric survey strategy to your start-up makes it easy to measure the fit of the product market and get all the data you need to steer your business in the right direction. Knowing how big your market is and what potential markets you have is key to helping you measure and get fit in product markets. Existing markets, where your addressable market is large and there are no underserved competitors, are a fantastic place for you to find products that fit the market. You have a good idea of where you will be most in-demand and how much of a market you have, and you can easily reach it with the help of customer survey data. [Sources: 1, 12, 14, 16]

When working on SaaS product marketability, direct feedback from your customers should be at the top of your priority list. With modest improvements to existing features, the feedback you receive is unlikely to be translated literally into the skills your SaaS products need to achieve product-market - fit accuracy. This shows how important it is to ship your product early and often before you set out to use your start-up's first customers to validate product and market adaptations. [Sources: 2, 10]

After all, the savvy SaaS founders know that finding the perfect product is a long way - market-compliant. As Marc Andreesen says, Product Market Fit is not a discreet, big event, and only a few SaaS startups will reach the crazy level of growth required to achieve a definitive product-market fit. Most founders agree, however, that growth rates are an indicator of whether product and market fit. [Sources: 0, 4, 9]

If you do not yet know what product is called market-oriented, you still need to track your SaaS key figures. There are often many lines in SaaS, and there is a great way to forget tight fit, but If you want to try things that systematically improve the alignment of SaaS customers and bring your SaaS business closer to product marketability, then try them based on better customer alignment. If you are not yet fully product and market aligned, there are a number of things you can track and use - identified SaaS metrics to improve your customers and achieve product/market alignment, or you can systematically try to do so based on better customer alignment. [Sources: 5, 6, 10, 13]

Product and market fit is not just a concept that companies tick off in the early phase and then stop thinking about it, but the concept is equally important for the success of start-ups. [Sources: 15, 17]

Marc Andreessen coined the term "product-market fit," which defines when a new application will gain broad market acceptance. It is a term used to describe the fact that there is a market that can be satisfied by a product, and that is when people who know what they want and want from the product are satisfied with what is offered. Product market adjustments are the points at which the majority of people, or at least a large percentage of people who know when and where they want the products, are happy to be offered them. [Sources: 1, 8, 18]






Sources:

[0]: https://www.cobloom.com/blog/product-market-fit

[1]: https://medium.com/@alangleeson/has-your-saas-startup-achieved-product-market-fit-fb708b3e0604

[2]: https://www.chargify.com/blog/finding-product-market-fit-when-to-stand-firm-when-to-pivot/

[3]: https://www.holloway.com/s/rvc-fundamentals-of-product-market-fit

[4]: https://devsquad.com/blog/7-ways-smart-saas-founders-achieve-product-market-fit/

[5]: http://blog.getretained.com/productmarket-fit-for-saas/

[6]: https://www.belighted.com/blog/saas-metrics

[7]: https://www.invespcro.com/blog/creating-a-growth-plan-for-your-saas-startup/

[8]: https://andrewchen.co/zero-to-productmarket-fit-presentation/

[9]: https://www.growthsandwich.com/resources/how-to-measure-product-market-fit/

[10]: https://chaotic-flow.com/finding-saas-product-market-fit/

[11]: http://www.saasgenius.com/blog/illusion-productmarket-fit-saas-companies

[12]: https://www.productplan.com/how-to-measure-product-market-fit/

[13]: https://www.lightercapital.com/blog/how-to-establish-product-market-fit/

[14]: https://www.hammadakbar.com/saas/8-practical-steps-measure-product-market-fit-saas-startup/

[15]: https://www.priceintelligently.com/blog/brian-balfour-saas-product-market-fit-is-wrong

[16]: https://digintent.com/product-market-fit/

[17]: https://openviewpartners.com/blog/from-product-market-fit-to-product-market-price-fit/

[18]: http://www.pretzellogic.org/2019/06/02/saas-product-market-fit-fools-you-into-thinking-that-growth-will-come/



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©2020 by Houman Asefi. 

Sydney, Australia